1250619 SIP myths you must know!

People in India just don’t want to buy entry level cars in India any more. Automobile companies are having a rough time in sale of entry level cars. The share of small car sale in total sale of automobiles is continuously shrinking in the country. In November 2023, India’s biggest automobile manufacturer, Maruti Suzuki India (MSI) could sell only 9,959 units of mini cars. MSI’s mini car segment comprises Alto and S-Presso. The Japanese automobile company could sell 49,016 units of utlity vehicles. Mini cars constituted mere seven per cent of total PV sales in the month of November 2023. MSI registered total sale of 1.34 lakh units of passenger vehicles (PV) in the same month. Utility segment comprised 36 per cent of total sales.

Maruti Suzuki is constantly facing shrinkage of its share of mini car segment in its total PV sales. Maruti Suzuki’s mini car sale has almost halved to 9,959 units in November 2023 from 18,251 units in year ago period. Earlier, before 2014, mini cars used to comprise more than 50 per cent of its total sale. Mini car segmet share in total sale is continuously falling.

While, during the same period, share of utility vehicles in MSI’s total PV sale has continuously expanded. Before 2014, utility vehicles sale comprised less than one per cent of MSI’s total PV sales. And in Novembember 2023, this particular segment comprised 36 per cent of total sales. In year ago period, utility vehicle segment’s share comprised of 24 per cent of total sales.

India’s largest automotive company reported sale of 1.34 lakh units of PVs in November 2023 up 1 per cent YoY from 1.32 lakh units in November 2022.

Meanwhile, other automobile companies also reported PV sales figures for November 2023. Overall numbers are not that impressive this time around. Tata Motors reported sale of 46,068 units of PVs, while another home grown automotive company Mahindra & Mahindra (M&M) registered sale of 39,981 units.